What is value of call option with infinite time to maturity

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1. What is the value of a call option with infinite time to maturity and a strike price of $0? Use the parameters of the example: S₀ = $80.50, r_F = 1.77%, and σ = 50%.

2. Price a call option with a stock price of $80, a strike price of $75, 3 months to maturity, a 5% risk-free rate of return, and a standard deviation of 20% on the underlying stock.

Reference no: EM131243453

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